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Mauritius: A Competitiveness Assessment

Patrick Imam and Camelia Minoiu

No 2008/212, IMF Working Papers from International Monetary Fund

Abstract: We assess the competitiveness of Mauritius in recent years using two approaches. First, we estimate the difference between the equilibrium and the actual real exchange rate using four methods: the macroeconomic balance approach, the single-equation fundamentals approach, the capital-enhanced approach, and the external sustainability approach. The methods consistently suggest that at the end of 2007 the exchange rate was aligned with its equilibrium value. Second, we undertake a comparative analysis of structural competitiveness indicators and find that Mauritius often fares better on business climate than other small island economies and high-growth Asian economies. Nevertheless, there are areas for improvement.

Keywords: WP; CA balance; terms of trade; Mauritian rupee (search for similar items in EconPapers)
Pages: 33
Date: 2008-09-01
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